Ian Freeman, a New Hampshire man in his 40s, was sentenced to eight years in prison for running an unlicensed bitcoin exchange business. He will also be fined at least $40,000, although the exact amount has yet to be determined at a hearing. The Associated Press reports: Ian Freeman was led away in handcuffs after his sentencing in U.S. District Court in Concord. Prosecutors said Freeman, a libertarian activist and radio show host, created a business that catered to fraudsters who targeted older women with romance scams, serving as “the final step to permanently separate victims from their money”. Freeman, who is in his 40s, told the court he did not believe he broke the law. He said he was trying to get people to adopt Bitcoin. He said there were times when he detected fraud and protected many potential scam victims. He apologized for not being able to help them all. “I don’t want people to be taken advantage of,” said Freeman, who said he has cooperated with law enforcement to help some people get their money back.
Freeman said he designed a series of questions for clients, including whether a third party was coercing them into their transactions or whether they were under duress. Some victims lied about their circumstances, he said. Freeman also said he hadn’t heard of the scam victims until he saw their stories in the newspaper. “It didn’t matter how strict I was or how many questions I asked,” he said. After a two-week trial, he was found guilty of eight counts in December, although his money laundering conviction was later overturned by the judge. The prosecution appealed to the First Circuit Court of Appeals.
Freeman was convicted on the other charges, including operating an unlicensed money transmitting business and conspiracy to commit money laundering and wire fraud. Freeman’s lawyers said they planned to appeal and asked that he remain free on bail for now, but U.S. District Court Judge Joseph LaPlante did not allow it. The sentencing guidelines called for much longer sentences, ranging from about 17 years to almost 22 years in prison.